Question

If you placed $1,000.00 in a savings account with an interest rate of 4.5%/ month versus an account with 3.75%/ month, how much more interest could you earn in that month?
$1.25 more
$12.50 more
$7.50 more
$75.00 more

Answer 1

If the rate is 4.5%/ month
so, it is 1000 x 4.5 ) / 100 = $45
if the rate is 3.75%/ month,
so it is 1000 x 3..75 ) / 100 = $37.5

so the answer is $45 - $37.5 = $7.50 more